Chocolates Products In the Brazilian Market †MyAssignmenthelp.com

Question: Discuss about the Chocolates Products In the Brazilian Market. Answer: Introduction Background of the report is the export of high-end ranges of chocolates produced in Canada to be exported to Brazil. The Brazilians are chocolate-lovers and the middle class and affluent class of Brazilian society contribute to the 20% growth rate of premium chocolate market in Brazil in recent years. The presence of more than 3000 premium chocolate stores in Brazil is an added advantage of the export market. The aims and objectives of the report is to develop amarketing plan for export of the Canadian chocolate brand in Brazil. The report is written because without a proper market analysis andmarketing plan for export, the Canadian chocolate brand may not achieve business targets in the Brazilian market. The scope of the report includes different sections like Analysis of Export Market which include main economic figures of Brazil, The SWOT analysis, Evaluation of the business potential for the product in the export market .The next section analyzes if the comparative choice for the export country is right, the target markets based on segmentation variables and target sales are analyzed in the third section of analysis, the Marketing Plan is developed in the fourth section of analysis which includes 4Ps of Marketing, the 3 principles of marketing and are discussed at the end of analysis and 5 marketing activities for launch of products are provided. At the end conclusion and future recommendations are drafted (Bresler and Lubbe 2014). Analysis: Analysis of export market Main Economic Figures of Brazil As of 2016, population of Brazil is 207.7 million. The GDP of Brazil is 1.795 trillion USD as of 2016 and GDP per head is 8649.95 USD as of 2016 and the median age in Brazil is 31.6 years for male and 32.4 years for female (Della Lucia et al. 2016). SWOT Analysis Strength The chocolate is of premium quality The chocolate belongs to a developed country Canada and the brand image is reputed. The chocolate brand produces highly differentiated products, targets the niche segment of the Brazilian market who have high disposable income The chocolates range of Brazil has extensive product width and many varieties Weakness Demand forecasting and weak customer base in the Brazilian market can be a weakness for the high end chocolate range (Hollensen 2015). Opportunities in the Brazilian Market According to Brazilian Association of Chocolate industry, Brazilians love chocolates and 75 percent of the population are passionate lovers of chocolate while 35 percentage of the Brazilian population prefer to consume chocolates over food and drink. The consumption rate of chocolates during Valentines Day, Easter and Christmas and are respectively 11%, 23 % and 16%. The production of chocolates has decreased and the consumption rate of chocolates in Brazil has increased and thus the Brazilian government has decreased exports and increased importing of chocolates from other countries The high end chocolate range made in Canada can take leverage of these opportunities of the external market in Brazil (Laufs and Schwens 2014). Threats Brazilians tend to prefer chocolates made in the home country rather than exported chocolates The high-end chocolates of Canada can face competition from imported chocolates of Switzerland, Germany, Belgium and United States. Arcor, Ferrero. Hershey's and Mars and Garoto are some of the competitors. Evaluation of the business potential for the product in the export market Potential of the business market of the export market and evaluation of potential demand The demand for chocolate is more in Southern region of Brazil as this part is the coldest region of the country and chocolate is considered as a food type in Brazil. 2.5 kilograms of chocolate are consumed by per person in a year in Brazil. The chocolate demand is optimum throughout the year irrespective of the festive season and since demand surpasses production, import of Chocolates is favored by the government. Comparative Choice Based on the market analysis, Brazil is a very good choice of export market for the high end chocolate ranges produced in Canada. There is no need to change the export country because 1) There is growing demand of imported chocolates in Brazil as production of chocolates in the country cant meet the demand for chocolates 2) The premium chocolate market in Brazil is growing at 20% and customers are willing to pay premium price for chocolates (Della Lucia et al 2016). 3) The demand for chocolates in Brazil remains constant throughout the year irrespective of festive season. 4) Brazil is third largest market in the world for chocolates. Determination Of Targets Determination of commercial targets: Expected sales of the product- The product is expected to reach a sales target of BRL 1 billion by 2020(Weisbrot, Johnston and Lefebvre 2014). Target: segmentation of market and customers Geographic segmentation The market in Brazil can be segmented based on region like North and South. The climate of Southern Brazil is cold and thus the high-end Chocolate ranges produced in Canada can target this segment of population Demographic segmentation The high-end chocolate brand of Canada can target the population who are younger. The consumers of chocolates can be babies, teens, young adults and adults but the Canadian premium chocolate brand should target the middle and affluent class of the society who are willing to play premium price for high quality chocolate brands. Psychographic segmentation- The psychographic variable segments the Brazilian chocolate market on basis on values, lifestyles, social status and activities, interests and opinion. From this segmentation, the Canadian Chocolate brand can target the general population of Brazil who are chocolate lovers and adults with high disposable income who prefer premium quality. Behavioral segmentation In the Brazilian market for chocolates, the love for premium chocolate brands by Brazilians and the preference of Brazilians to buy chocolates from more than 3000 premium chocolate stores in the country, preference of chocolates over other food and drinks and increased rate of chocolate consumption during festive season can be used as behavioral segments (de Andrade Silva et al 2017). Target customers- From the market segmentation, the Canadian high-range chocolate brand will target the middle class and affluent class of the society of Brazil who can afford to pay premium price for good quality of chocolates. STRATEGY (of your marketing plan) The strategy to be implemented to launch the product To create customer value, the marketing mix (4 Ps) for the product is developed Product- The product will have different varieties like molded chocolates with which will have filled center with fruits, creams, liquors, chocolate truffles .The high-end chocolate ranges of Canada will have different product lines and product width. At least 35 % of cocoa should be present in the products and fats will be added in the products along with cocoa because of the climate of Brazil. The products that will be sold in premium chocolate shops which will run under the Canadian chocolate brand name will include handmade truffle, bonbons in different flavor, marshmallow and chocolate concoction, Hot cocoa drink made from thick melted chocolates and milk chocolates with biscuit products, wafers with peanut butter filling and dark chocolate with fruit filling Prepackaged options will be available and products of the high-end Canadian chocolate rage will also target the gift market in Brazil(Afoakwa 2016). Price- The product will be adopting premium pricing technique because the quality of the products will be of high range. The price range will be in between 150 Brazilian Real to 300 Brazilian Real depending on the quantity and type of the product. Place (distribution/channels)- The high range chocolates will follow selective distribution technique and will be available in the more than 3000 premium chocolate stores in the country. The high-end chocolate range from Canada can also tie-up with food giants of Brazil like Bauducco. The Canadian chocolate brand can also build stores in shopping malls of Brazil under own brand name like that of Kopenhagen and Cacau Show. The high-end chocolate range manufactured in Brazil can also be introduced in the market in Canada through online channels. The online store of the Canadian brand will have a collection of its premium chocolate ranges and easy payment options through mobile apps and company website will be available. Online products will be delivered in homes of Brazilian customers/ Promotion (communication / advertising / sales promotion) Both above the Line and below-the Line Promotional techniques will be adopted by the Canadian chocolate brand. Advertising in Televisions, radio channels, newspapers, magazines will enable the Canadian premium chocolate brand to target a wide range of Brazilian consumers. Also the focus will be on communicating the health benefits and quality of the chocolate ranges and the brand will be positioned as a premium brand. Communication will also include communicating about the Corporate Social Responsibility (CSR) initiatives of the organization in Brazil and the approaches the Canadian organization is adopting towards environmental sustainability in Brazil. The communication will adopt an integrated marketing communication (IMC) approach. Sales promotion will be used heavily during festive seasons like Christmas and Easter. The promotional offers will also be visible in the social media platforms. The Canadian chocolate brand will promote itself through social media platforms like Facebook, Twitter, Instagram and other social media platforms (Chaffey 2016). The 3 Principles of Marketing will be customer value, competitive advantage and focus. The customer value will be created by delivering premium chocolate products of highest quality, focus will be to create highly differentiated products for a niche market with a premium pricing strategy. The competitive advantage will be gained by the Canadian chocolate brand by enhancing focus on value chain activities and by adopting innovation to develop premium chocolate products for the Brazilian Market. Marketing activities to be implemented to successfully launch the product in Brazil. Launching of online store with integrated mobile apps- The online stores of the Canadian chocolate brand will have the availability of different premium chocolate ranges. Brazilian customers will be able to make easy and safe payment online through a mobile app. The online stores will deliver products in customers home. Social media and Search Engine ads- Use of social media will enable the premium chocolate brand to create brand awareness and build relationship with customers through Facebook, Twitter and Instagram. In-store promotional events can be conducted in the premium chocolate stores of the Canadian chocolate brand especially during festive seasons like Christmas and Easter to drive sales and activities like loyalty bonus should be given to customers who make repetitive purchase. This strategy will be used for customer retention ATL promotion ads in Televisions, newspapers and magazine will focus on the health benefits and premium quality of the chocolates. In the introductory stage of the Product Life Cycle (PLC), the Canadian chocolate brand must reach a large amount of target audience, thus ATL promotional activities will help to increase brand awareness in the introductory stage. Public relation with government, legislative bodies and customers of Brazil will focus on sustainability factors and the CSR initiatives of the organization. The focus on Triple Bottom Line factors-People, Profit and Planet will enable the Canadian premium chocolate brand to enhance its brand image in hearts of Brazilian customers and Customer Perceived Value will increase (Armstrong et al 2015). Conclusion It can be concluded that the marketing plan will enable the high-end chocolate ranges made in Canada to be introduced in Brazil. The foreign market analysis of Brazil is of paramount importance for the introduction of the high-range chocolate ranges made in Canada. The marketing plan starts with a market analysis in which the main economic figures of Brazil, SWOT analysis, evaluation of business potential for the product in the export market are discussed. The next section discusses about the comparative choice, from the analysis Brazil is the right choice because of high demand of premium chocolates and no need of change in country is required, the third section discusses about target markets and the fourth section gives a brief about the 4Ps of marketing strategy and the marketing activities that can be implemented to launch the product in Brazil. Future strategy is to open premium chocolate stores for the Canadian chocolate brand; initially the distribution could be done by collab orating with more than 3000 premium chocolate stores in Brazil. References Afoakwa, E.O., 2016.Chocolate science and technology. John Wiley Sons. Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015.Marketing: an introduction. Pearson Education. Bresler, M. and Lubbe, I., 2014. Marketing management. Chaffey, D., 2016. 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